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For the first time since last week's CES conference, HD DVD supporter Toshiba has gone on the offensive, this time by slashing the prices of its main HD DVD players.
Effective yesterday, Toshiba's high quality HD-A3 is $150, the HD-A30 (with 1080p output) moves down to $200, and the top of the line HD-A35 is now $300. A couple of these players were offered at similar prices in internet holiday deals, and this formal price setting will force retailers to move them even lower. For example, Amazon has already priced the HD-A3 at $131.98, which is a good bargain if you don't mind investing that amount in a format that many now consider doomed.
Toshiba will also set up a new marketing effort to combat the negative, second-place perception that has set in since last week's Warner-Blu-ray contract. A lot of the advertising is supposed to follow the bargain-basement strategy of the current "Perfect HD Offer," a mail-in offer where the consumer receives 5 free HD DVDs with any purchase of a Toshiba player. We think that free is beautiful, but the HD DVD camp still needs to come up with something more substantial than a few coupons.
